What’s the fastest way to lose customers and possibly cause irreparable damage to your reputation? Threaten your customers with bailiffs to enforce non-payment of energy bills during a global pandemic.
The quick way to lose trust
Several energy supply companies have been making the headlines for all the wrong reasons and have been shamed by the media for threatening customers struggling to pay off their energy bills.
What’s worse, is that the Government’s response to Covid-19 explicitly states that energy suppliers should not cut off the energy supply of customers during the nationwide lockdown.
With millions of people furloughed or having lost their jobs the optics of such action is, well, awful.
According to a news outlet that received a copy of a letter sent to customers, warns that bailiffs, at the behest of the energy supplier, will be coming if a bill is not paid ASAP.
The companies sending such letters are using the technicality that they’re chasing debts that were accumulated prior to the pandemic lock down.
Reputational Damage
The lock down is a tough time for everyone, including energy suppliers who are worried about their revenues.
However, threatening customers who are most likely struggling to make ends meet through no fault of their own is the quick way to lose consumer trust and tarnish the industries reputation.
Natalie Hitchins of consumer advocacy group Which? said: "Many customers will have been financially impacted by the corona virus, so it is concerning to hear that any energy supplier is using debt collectors to place pressure on customers who could be struggling during this difficult time, despite agreeing with the government to support customers in financial distress."
It's not just domestic customers that are being targeted by debt collectors. There is mounting concern over the number of Micro businesses receiving threats from debt collectors.
“What we have noticed in the early days of the lock down is that the proportion of financially vulnerable micro businesses coming to us for assistance is higher than it was before the outbreak, indicating that small businesses, in particular may be struggling with these issues. The guidance is quite clear that energy suppliers must consider whether their customers are in financial difficulty and whether they can offer assistance. This is not carte blanche for customers to avoid paying bills, but suppliers should be sensitive to the circumstances of their customers on a case by case basis,” said Ed Dodman, a director at the Energy Ombudsman.
Making friends and winning trust
Not all energy suppliers are acting the same way. Some suppliers (and those most likely to emerge from the current crisis with their reputations intact) are offering to defer payment deadlines for up to three months.
They’ve also pledged to suspend following up on debts as part of packages designed to help support their customers throughout the Covid-19 pandemic.
“This is a worrying time for people across the country and we would expect energy companies to take the current circumstances into account as they carry out their business,” a government spokesman said.
Further Reading